The Department for Work and Pensions (DWP) is urging state pensioners who believe they have a 'higher income' to check their eligibility for a significant financial top-up known as Pension Credit. This support can be worth an average of £4,300 per year when including associated gateway benefits.
Who Qualifies for Pension Credit?
Pension Credit is designed to top up your weekly income if it falls below a specific threshold. For single pensioners, it ensures a minimum weekly income of £227.10. For those with a partner, the joint weekly income is topped up to £346.60.
Critically, having an income above these amounts does not automatically disqualify you. Official guidance from NI Direct states: "If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs."
How Your Income and Savings Are Calculated
When you apply, the DWP calculates your total income. This includes your State Pension, any other pensions, most social security benefits like Carer's Allowance, and earnings from work.
The treatment of savings is a key detail for many:
- Savings and investments of £10,000 or less do not affect your Pension Credit entitlement.
- For every £500 over the £10,000 threshold, the DWP counts £1 as weekly income. For example, £11,000 in savings would be treated as £2 of income per week.
It is also important to note that if you are entitled to a private, workplace, or personal pension but have not started claiming it, the amount you would expect to receive is still counted as income. The same rule applies if you have deferred your State Pension.
Key Details and Next Steps
The £4,300 average annual value of Pension Credit includes crucial extra help it unlocks, such as a free BBC TV Licence for those aged 75 or over and support with certain costs like Royal Mail redirection.
Your living situation does not necessarily prevent a claim. You can still qualify if you live with family, as assessors look at your income, not theirs. Owning your own home also does not count it as 'capital' that would affect the claim.
If your circumstances change—for instance, if your savings increase or decrease—you must inform the Pension Centre so they can reassess your claim and ensure you receive the correct amount.
Pensioners are encouraged to contact the DWP to check their eligibility, as this valuable support remains underclaimed.
